Originally Posted by
YXUFlyboy
It does, and what you describe is what the YYC hub is for AC. But - back to my question - why is that way for AC, but not for WS or other carriers? Why did Hainan add PEK and AM add MEX and AC added nothing? Are they trying to add these routes to funnel Asia traffic thru PEK and South American traffic thru MEX?
AC might have higher costs comparing to WS, HU and AM.
Secondly, PEK and MEX each have population that is much greater than YYC, implying greater shares of originating passengers, even adjusting for the lower wealth. This is important because local carriers enjoy greater advantage among sales from its home country, especially for high yield business travelers due to more sales channels, bulk contract or FFP considerations. Thus HU and AM can draw more high yield passengers from its hub comparing to AC from YYC, a much smaller city.